Corporate Scam in India

10 Biggest Corporate Scam Of India
1.Harshad Mehta Scam(1992).
What Was Harshad Mehta Scam?
It is one of the most Technical and done with very cleverness Scam in the
year 1992.This scam takes all the advantage of loopholes in the Indian share
market.Harshad Mehta was an intelligent Broker and he knew the exact
loopholes with the Indian economy and the banking system.
in terms of Value, This Scam is About a sum of Rs 4000 crore.And that is in

the 90s so you can imagine the value of such a sum today.
What Was The Impact of Harshad Mehta Scam?
The Immediate impact of Harshad Mehta scam was sharp fall in share prices
and indices.
due to Harshad Mehta scam market loss 0.1 million crore loss in terms of
market capitalization.
Then Government liberalization policy comes under various criticism.
SEBI Postponed sanctioning of Private sector Mutual Fund.
The Euro-Issues Planned by various companies were delayed due to Harshad
Mehta scam.
2.C.R Bhansali Scam(1992-1996)
Chain Roop Bhansali Shortly known as C.R Bhansali scam occurred in

1995.The C.R Bhansali scam was of Rs.1200 Crore,Which is the huge
amount of the time of 1995.
C.R Bhansali Collecting all money through his mutual fund company and
transferring all amount to Non-Existing Company.
Bhansali had floated 133 companies to pull in funds and suck them out.
In three years, between March ’93 and ’96, the net worth of CRB Capital
Markets plunged from Rs 11.65 crore to Rs 436.6 crore, or over 37 times.
Alarm bells should have gone off about manipulation, especially as SEBI,
which had given in an inspection report on the group’s merchant banking
division and asset Management Company, came up with serious breaches.
3.Cobbler Scam (1995).
What Was Cobbler Scam?-Borrowing Loan From Banks in the Names of

Fictitious/Non-Existence Cooperative Society of Shoe Makers.
The Cobbler Scam is one of the biggest million dollars scams in Indian
History, is nicknamed The Great Cobbler Scam.this Great Cobbler Scam was
that various businessman & politicians had siphoned around $600 million US
dollars from a scheme that was running by the Government of India meant to
benefit the poor cobblers of Mumbai. The money of the scheme was meant to
provide low-interest loans and tax grants to the Mumbai’s poorest – cobblers
who work 16-hours a day for less than $2. Not a single money reached these
cobblers.
4.Ketan Parekh Scam(1999-2001)
Ketan Parekh is also Described as Pied Piper of Dalal Street.Ketan Parekh

was Trainee of Harshad Mehta.Currently, Ketan Parekh debarred from trading
in Indian share market till 2017.
His financing method was very simple.he bought a share when they traded at
a low price and when the price was high enough he pledges to share with the
bank as collateral for Funds.and he also borrowed from various companies
like HCFL.The amount involved in the scam was Rs.1500 crore.
Impact:-
♦One of the biggest falls in Bombay stock exchange-700 points.
♦short selling was banned for 6 months.
♦options and future index derivatives were intintroduce
5.Sanjay Agrawal Scam(2001)
Sanjay Agrawal was CEO Of Home Trade Company.He Launched Home

Trade in the year 2000.He Spends nearly Rs.240 million on advertising and
advertisements were done by big stars like Shahrukh khan,Sachin
Tendulkar’s and Hrithik Roshan.
After Gaining Trust and Popularity he Swindled rs.600 crore from more than
25 cooperative banks.
The government securities (gilt) scam of 2001 was exposed when the
Reserve Bank of India checked the accounts of some cooperative banks
following unusual activities in the gilt market. Co-operative banks and brokers
acted in collusion in a bid to make easy money at the cost of the hard earned
savings of millions of Indians.
In this case, even the Public Provident Fund (PPF) was affected. A sum of
about Rs 92 crore (Rs 920 million) was missing from the Seamen’s Provident
Fund. Sanjay Agarwal, Ketan Sheth (a broker), Nandkishore Trivedi and
Buchan Rai (a Hong Kong-based Non-Resident Indian) were behind the
Home Trade scam.
6.Dinesh Dalmia Scam(2001)

Scam Industry-Information Technology.
Amount Involved in Scam-595 crores.
About:-Trading in Share Which is not listed in Stock Exchanges.
Dinesh Dalmia was a promoter and managing director of DSQ Software

limited.Dinesh Dalmia was involved of criminal breach of trust, cheating, and
fraud is claimed to have induced National Securities Depository Limited
(NSDL) to dematerialise and credit 130 lakh equity shares of the software
company as fully paid shares.
The shares were transferred allegedly by Mr. Dalmia to his front companies
and entities without payment of sale considerations.
7.Satyam Scam (2009)
You already know a lot of things about the world famous Satyam Scam Which
Took Palace in the year 2009.it is regarded as “Debacle of Indian Financial
System”.This scam was clear cut example of how an investor can lose is
money by simply misstating the Balance Sheet of the company.
Protagonist – B Ramalinga Raju & others

Amount – Rs. 8000 Cr
about –Satyam was one of the biggest accounting scandals where
protagonist Ramalinga Raju Accepts that he Cooked up Accounts of Satyam
Computers and inflated Satyam computers bank balances and Accounting
Entries.He and his family members have also been accused of money
laundering through hundreds of companies.
8. Speak Asia Scam (2011)
Protagonists: Harinder Kaur, Manoj Kumar Sharma, Tarak Bajpai &

others.
Amount – Rs. 2000 + Cr.
about? –Speak Asia Scam was Scam about Business Survey Firm and
Guaranteeing it’s an investor to Quadruple their income in just 1 year.
A criminal case was registered against the Speak Asia firm in 2011, some
accounts frozen and it’s business were shut down.
9. – Saradha Chit Fund Scam(2013)
Protagonist – Sudipta Sen

Amount – Rs.4000 crore.
about–it’s about fake collective investment scheme.and it is one of the biggest
Ponzi schemes.
shraddha scam also enjoys big political patronage.
The chit fund ultimately collapsed leading to defaults after a crackdown by

SEBI and the Reserve Bank of India. The default, apart from leaving small
depositors high and dry, also led to 10 media terminals owned by Saradha
being forced to wind up, leaving 1000 journalists jobless.
10.PACL Scheme Scam.(2015)

About-Lures near 55 million investors by the technique of raising money
against bogus and allotment letters.
Money Involved-Near Rs.47000 crore.
The matter involves the alleged collection of about 450 billion rupees ($6.8
billion) from roughly 55 million investors across the country.

Corporate Scam in India

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Corporate Scam in India

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10 Biggest Corporate Scam Of India

1.Harshad Mehta Scam(1992).

What Was Harshad Mehta Scam?

in terms of Value, This Scam is About a sum of Rs 4000 crore.And that is in

What Was The Impact of Harshad Mehta Scam?

2.C.R Bhansali Scam(1992-1996)

Chain Roop Bhansali Shortly known as C.R Bhansali scam occurred in

3.Cobbler Scam (1995).

What Was Cobbler Scam?-Borrowing Loan From Banks in the Names of

4.Ketan Parekh Scam(1999-2001)

Ketan Parekh is also Described as Pied Piper of Dalal Street.Ketan Parekh

5.Sanjay Agrawal Scam(2001)

Sanjay Agrawal was CEO Of Home Trade Company.He Launched Home

6.Dinesh Dalmia Scam(2001)

Dinesh Dalmia was a promoter and managing director of DSQ Software

7.Satyam Scam (2009)

Protagonist – B Ramalinga Raju & others

8. Speak Asia Scam (2011)

Protagonists: Harinder Kaur, Manoj Kumar Sharma, Tarak Bajpai &

Protagonist – Sudipta Sen

The chit fund ultimately collapsed leading to defaults after a crackdown by

10.PACL Scheme Scam.(2015)

Money Involved-Near Rs.47000 crore.

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